Jindal Power Gains Ground in Jaiprakash Associates Acquisition Bid

The Competition Commission of India (CCI) has granted in-principle approval for Naveen Jindal-led Jindal Power's proposal to acquire the distressed Jaiprakash Associates, contingent on winning the current insolvency bid. This decision marks a pivotal point in the ongoing insolvency proceedings regarding the debt-laden conglomerate.

Besides Jindal Power, the CCI has also cleared acquisition proposals from PNC Infratech, Adani Group, and Dalmia Bharat. Approval from the competition watchdog, following a Supreme Court ruling, remains crucial before any entity submits a resolution plan, which demands a nod from the CCI prior to creditor voting.

Jaiprakash Associates is currently under the corporate insolvency resolution process, with creditors claiming around Rs 57,185 crore. The National Asset Reconstruction Company Ltd (NARCL) leads these claims, having taken over JAL's stressed loans from a consortium headed by the State Bank of India.

(With inputs from agencies.)